Norwegian Airlines CEO accepts Bitcoin for air tickets, opens exchange, loves cryptocurrency

Norwegian Air, a well-known European low-cost airline, will allow passengers to purchase tickets using Bitcoin. But the story does not end there, as the company has also opened its own cryptocurrency exchange, local media reported yesterday.

Solving Financial Crisis with Bitcoin

Norwegian Air plans to allow Norwegian customers to purchase tickets using cryptocurrencies, including Bitcoin. The company’s new cryptocurrency exchange, the Norwegian Block Exchange (NBX), will be open to domestic customers starting in August. Moreover, Norwegian Air will reportedly launch exchange services in neighboring countries in the coming months.

NBX will integrate Norwegian Air's existing rewards program, allowing customers to earn points by trading on the exchange, which can be used to redeem air ticket discounts and other offers.

Stig A. Kjos-Mathisen, head of NBX, said:

“NBX customers can trade on the exchange and earn points using the payment solution NBX provides to airlines.”

Norwegian Air Shuttle operates 195 aircraft on more than 500 routes around the world. The company was founded in 1993 by Bjørn Kjos, who resigned as CEO two weeks ago. It is reported that Kjos’ son Lars is likely the driving force behind the decision to adopt cryptocurrency.

Lars Ola Kjos, 41, has worked at the airline for many years and is an avid Bitcoin investor. He reportedly holds more than $400,000 in cryptocurrencies, most of which he purchased before November 2017.

However, another reason for its decision to take a different approach could be that the group’s shares have fallen more than 75% since April 2018 and its finances remain stretched, following its bold plan to challenge transatlantic airlines in the long-haul market.

Norwegian lost about $170 million last year, citing a rise in mechanical problems, fuel hedging losses and a loss of competitive advantage over other airlines.

Therefore, diversification seems to be a way out of its financial difficulties.

Cryptocurrency enters the travel industry

Norwegian Air is not the first travel company to accept cryptocurrencies. California-based online travel agency CheapAir has been accepting Bitcoin payments since 2013. American travel company Expedia accepts Bitcoin for hotel and flight bookings through Coinbase.

Australian company TravelbyBit also specializes in providing cryptocurrency payment services to local merchants. The company has received $100,000 in investment from the Queensland government.

Caleb Yeoh, CEO of TravelbyBit, said:

“If you plan to travel around the world, you have to deal with multiple currencies, exchange rates can be complicated, ATMs can be hard to find, and you can even get scammed by money changers. So it makes sense to use a global currency like Bitcoin while traveling.”

Now it seems that cryptocurrencies may really be catching on in the travel industry